A previous article covered the reasons why you shouldn’t wait too long to purchase Long-Term Care (LTC) Insurance. However, a recent piece published on CBS.com makes a compelling case for thinking about buying a policy when you hit age 50 even though you may be a decade or more away from your federal retirement.
Why Buy LTC Insurance In Your 50s?
They say 50 is the new 40 and this is precisely why you should start thinking about purchasing LTC insurance when you hit your mid-century birthday. The younger and healthier you are the lower your LTC premiums will be. An article published on Yahoo News indicates that the average cost for a LTC policy with an initial value of $165,000 (and 2% inflation growth) is considerably higher at age 65 than at age 55. And LTC insurance premiums are generally higher for women because they have a longer average life expectancy than men.
“In fact, your odds of developing cancer nearly double between the ages of 45 and 54.”
The Older You Are, The More Likely You’ll Be Declined
As you enter your late 50s, you’re at a much higher risk for serious health conditions like high blood pressure, diabetes, stroke, and heart disease. In fact, your odds of developing cancer nearly double between the ages of 45 and 54. Even if you’re not denied LTC coverage at age 60 or older, existing health conditions that come with age will likely drive up the cost of your premiums.
Compare Different LTC Policies Before You Buy
Take your time comparing LTC policies and look closely at the following:
- Duration Of LTC Benefits: A policy can cover LTC costs for a year to as many as five years and your premium is based on the coverage you purchase in addition to your age and gender.
- Conditions Required For Coverage: Each insurance company requires certain conditions to be met before benefits and coverage kick in.
- LTC Insurance Waiting Period: It’s the amount of time before a policy begins paying benefits after you meet the requirements (see above). During the waiting period, the cost of LTC is out of pocket.
- Maximum Daily Benefit & Maximum Policy Benefits: The daily maximum is the amount your LTC policy will pay for each day of care. The maximum policy benefit is the total dollar cap your LTC policy will pay when you begin using your benefits.
- LTC Insurance Inflation Protection: Inflation protection increases the value of your benefits by a pre-determined percentage over a period of time.
Connect with an FRC® trained advisor to learn more about LTC insurance.
